The KSE-100 index on Friday plunged by a massive 471.07 points to close at 14 weeks low level of 11,375.09 points after global stock markets crashed due to weakening of US economy, analysts said. Panic selling was witnessed, mainly by local investors, while the foreign participants remained net buyers of shares worth $0.48 million.
After opening on a negative note, the index hit 11,301.29 points intra-day low level, down 544.87 points. Trading volume at ready counter increased to 113.170 million shares as compared to 48.579 million shares traded on Thursday. Market capitalisation declined by Rs 125 billion to Rs 3.007 trillion.
Of 303 active scrips, 227 closed in negative and 16 in positive, while the values of 60 stocks remained unchanged. Lotte Pakistan PTA was the volume leader with 11.933 million shares. However, it lost Re 1.00 to close at Rs 10.69. Fauji Fertiliser Bin Qasim declined by Re 0.93 to close at Rs 45.14 with 7.033 million shares. KESC decreased by Re 0.53 to close at Rs 1.56 with 6.426 million shares. Jahangir Siddiqui Co closed at Rs 5.51, down Re 0.87 with 5.752 million shares.
TRG Pakistan lost Re 0.42 to close at Rs 1.75 with 5.512 million shares. Azgard Nine declined by Re 0.99 to close at Rs 4.58 with 3.974 million shares. PTCL decreased by Re 1.00 to close at Rs 10.57 with 3.938 million shares. Fauji Fertiliser Co plunged by Rs 4.64 to close at Rs 154.00 with 3.618 million shares. BOP and NBP declined by Re 0.68 and Rs 2.43 to close at Rs 5.34 and Rs 46.76 with 3.258 million shares and 2.964 million shares respectively.
New Jubilee Insurance and Nadeem Textile were highest gainers, increasing by Rs 2.76 and Rs 2.56 to close at Rs 58.69 and Rs 53.77 respectively, while Unilever Pak and Nestle Pakistan were worst losers, declining by Rs 282.28 and Rs 145.26 to close at Rs 5659.39 and Rs 3967.76 respectively. Hasnain Asghar Ali at Aziz Fidahusein Co said that the tumbling regional and international equity markets took along the local bourse, wherein negativity was quite prominent right from the word 'go'.
Selling further intensified when the local syndicate, responsible for artificial price hike during previous sessions, was disallowed exit. Anxiety thus increased and the index lost 4.6 percent, highest single-day fall in past three years. With buyers available close to lower locks, the sellers decided to reach out to the buyers, thus forcing across the board lower locks.
Since index heavyweights, used for disallowing wider market bearish reflection by low volume price influx, came under pressure, mainly OGDC. Since the stock is unlikely to find new buyers, back-to-back lower locks will keep the benchmark under severe pressure next week, technical recovery as being propagated should therefore be taken as an exit strategy, while availability of dividend yielding stocks likely to continue on growth track can be looked for placements around PE multiple of 6 and below, caution however stays the call, as various stocks are still considered expensive, given the curtailed local strength.